BITs and Satoshi: What’s the Difference?
BITs and Satoshi are two denominations of the popular Cryptocurrency Bitcoin (BTC). Just as fiat currencies are broken down into whole units and subunits, such as Euros and Cents, Bitcoin can be distinguished as BITs and Satoshi. The value of BITs and Satoshi are as follows:
- 1 BIT (or Microbit) = BIT = 0.000001 BTC – 1 millionth of a Bitcoin
- 1 Satoshi = SAT = 0.00000001 BTC = 1 hundred-millionth of a Bitcoin
A Microbitcoin, or ‘BIT’ is one-millionth of a Bitcoin. These can be referred to as BITS or through the symbol μBTC. Satoshi is the smallest denomination of Bitcoin (one-hundred millionth of 1 BTC), named after the pseudonymous creator/s of Bitcoin.
Why do we use BITs?
BITs are often used to display funds in online trading accounts. If you open an account using Bitcoin as a currency, displaying your funds in BITs will make it easier and simpler to view. This is because BITs usually show less decimal numbers than Bitcoin.
For example, if you deposit 0.00085 BTC in your account, this will be displayed as 850 BITs in your wallet.
Other Denominations of Bitcoin
There are other denominations of Bitcoin, although these are less commonly used and will not appear on your trading account. These include
- Millibits (0.001 BTC)
- Centibits (0.01 BTC)
- Decibits (0.1 BTC)
- DecaBit (10 BTC)
- Hectobit (100 BTC)
- Kilobit (1000 BTC)
- Megabit (1000000BTC)